Brent crude holds near a one-month high on Friday, on track for a second straight weekly gain of almost 6%. Persisting uncertainty over U.S. sanctions on Iranian oil exports and a closed Strait of Hormuz keeps the market on edge.
Brent trades above $94 a barrel Friday afternoon, on track for its second straight weekly gain. The benchmark is set for a weekly close above $90, which would reinforce bullish signals on the daily chart.
The advance comes as the United States tries to impose the toughest sanctions on Iranian oil exports, while Iran keeps the Strait of Hormuz closed and threatens a strong response. Further escalation in that standoff could send fresh shockwaves through the world economy and lift Brent above $100 a barrel.
On the charts, a broken Fibonacci level at $92.85 has reverted to support for Brent. The daily cloud top sits at $91.41, which should contain further dips and offer levels to re-enter the bullish trend. Resistance runs at 94.69, 95.12, 96.34 and 98.96, with support at 92.85, 91.90, 91.41 and 90.00.
Source: ActionForex
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